Four months into an unemployment crisis spawned by the coronavirus pandemic, about 24,000 people remain unable to get the full benefits they’ve applied for through Maryland’s Department of Labor.
Claims from about 4% of applicants are awaiting adjudication in the state’s problem-plagued unemployment insurance system, officials acknowledge. That has left many with little or no income as bills continue to come due. For some, that includes federal and state income taxes due this week.
“I can’t pay the State of Maryland until the State of Maryland pays me,” said Kate Peterson, a Millersville resident.
A private contractor in the trade show business, Peterson is among many whose claims have hit snags in a system that otherwise has successfully processed and approved payments to nearly a half-million applicants.
She said she’s had trouble getting through on jammed phone lines or by email to resolve issues that have resulted in receiving no payments some weeks or less than the full amount others. Her husband, who works in the same field, retained his job but with a pay cut, she said.
“It’s been tough,” Peterson said. “We’ve tightened every belt. We’ve gotten rid of every bill we don’t need. We’ve put things off. We modified the mortgage.
“We didn’t expect it to last as long as it did,” Peterson said.
A state labor department spokeswoman did not respond to a request for an interview. At a General Assembly hearing last week, Labor Secretary Tiffany Robinson told lawmakers that the system is overwhelmed by the sheer number of applications from people cast into unemployment by the pandemic.
Indications are that neither the coronavirus nor the economic fallout will go away soon.
In Maryland, new unemployment claims have risen each of the past four weeks, creating fresh demands on an already overburdened system. And with some businesses failing to survive the shutdown and closing permanently, their workers don’t have jobs to return to and will remain on unemployment.
“A lot aren’t reopening,” said state Sen. Delores G. Kelley, a Baltimore County Democrat. “And if we get the second round [of outbreaks], there are going to be problems.”
Kelley chairs the Senate Finance Committee, which was among the General Assembly panels that held hearings in May on the problems their constituents faced in filing for unemployment through the recently established Beacon One-Stop portal. More than 1,000 people signed up to testify, sharing frustrating experiences that one woman called “soul crushing.”
A statement by Gov. Larry Hogan in early May that the system was “fixed” only added to the angst of those whose claims remained bollixed up in the system.
The Republican governor praised the department Wednesday for reducing the backlog of unprocessed claims to a percentage “in line with pre-pandemic levels.”
“I can tell you the department is working day and night to try to get those people the help they need,” he said.
Kelley and other legislators say constituents continue to call them with complaints about the system even now, albeit at a slower pace. She said it took “some time” for Department of Labor officials to respond and begin to remedy the problems.
“Initially, I felt like they were being defensive,” she said.
“I’m still getting daily requests for help, but not to the extent of when we had the hearing,” Kelley said. “There was a time when we were getting hundreds a day.”